Taxes can vary by location, but in Austin, Texas, property taxes can be about 1.9-2.3% of a home’s taxable value. The location, and pop up school districts or other taxing jurisdictions can alter your location average. Effective property tax averages at about 2. 1%, so that is higher than average across the country.

What Is the Property Tax Rate in Austin Currently?

There is no uniform property tax rate in Austin. Instead, your total rate is the combined tax rate of several local entities.

Typical Austin Property Tax Rate Breakdown

Taxing Authority	Rate (per $100 of assessed value)
City of Austin	$0.57
Travis County	$0.37
Austin School District	$0.92
Community College	$0.10
Central Health & local districts	$0.12
Total Estimated Rate	$2.05–$2.15

That equals about 2.1% of taxable value for many Austin properties.

How Are Property Taxes Calculated in Austin?

The Austin property tax is determined by how much your property is valued and how much is taxed cumulatively.

Taxable property value is determined by the Austin Property Tax Formula: (Appraised Value − Exemptions) ÷ 100 × Total Tax Rate

Home value is $450,000
Tax rate will be 2.1%
Annual property tax is ($450,000 ÷ 100) × 2.1 = $9,450

This is the reason why even the smallest value or exemption changes can have an effect on your tax bill.

Why Are Property Taxes So High in Austin?

Because Texas does not have a state income tax, Austin's property taxes are higher than most cities in the United States. Without state income tax, local governments heavily rely on property taxes to fund:

Public education
Roads, bridges, and other infrastructures
Emergency services (police and fire)
Public health (healthcare districts)
Community colleges

Increasing home prices in Austin means tax bills increase, even if tax rates remain the same.

What Is the Average Property Tax Bill in Austin?

Here’s what many homeowners pay annually:

Home Value	Estimated Annual Tax
$350,000	$7,200–$7,800
$500,000	$9,500–$11,000
$750,000	$14,500–$16,500
$1,000,000	$19,500–$22,000

Actual taxes vary by school district, exemptions, and neighborhood.

What Exemptions Can Reduce Property Taxes in Austin?

Exemptions are the most effective way to lower your Austin property tax bill.

Common Austin Property Tax Exemptions

Homestead exemption (primary residence)
School district homestead exemption
Over-65 exemption
Disabled person exemption
Disabled veteran exemption
Surviving spouse exemptions

A standard homestead exemption alone can reduce your taxable value by tens of thousands of dollars, often saving $1,000+ per year, especially on the school tax portion.

Do Austin Property Taxes Increase Every Year?

Not always, but they often do.

Your tax bill can increase if:

Your home’s appraised value rises
Local governments approve higher budgets
New taxing districts are added

However, Texas law limits how much a homestead property’s taxable value can increase annually, which helps protect homeowners from sudden spikes.

How Do I Check My Property Tax Rate in Austin?

You can find your exact rate and estimated bill by:

Looking up your property with the Travis County Appraisal District
Reviewing your Notice of Appraised Value
Using Travis County’s online tax estimator

This shows every taxing authority applied to your specific address.

Is Austin Property Tax Higher Than Other Texas Cities?

Austin’s property tax rate is comparable to Dallas and Houston, but higher than many suburban or rural Texas areas.

However, Austin homeowners often pay more due to higher property values, not necessarily higher rates.

Need Help Reducing Your Austin Property Taxes?

Property taxes can be complex, especially for high-value homes, investors, business owners, and expats.

Dimov Partners helps clients:

Analyze property tax exposure
Maximize exemptions
Coordinate tax strategies across income, property, and business taxes

Contact Dimov Partners today to get expert guidance and protect your wealth with smarter tax planning.

FAQ: Austin Property Tax

Why is Austin's Property Tax So High?

To compensate for the lack of state income tax, Texas local governments and municipalities use property tax to fund schools and public infrastructure. Additionally, due to rapid home value appreciation and several local governments imposing taxes, property taxes are increasing every year.

Is 100k Good In Austin, Texas?

$100K is considered good in Austin, Texas as it is above average income and taxes. That income gives a comfortable lifestyle for many Austinites despite the rising housing costs.

What is Your Take Home Pay on a 70k Salary?

After taxes, the net annual income is about $56,000, which is about $4,700 a month.

How Much Is the Property Tax in Austin, Texas?